Frontline Ltd. (FRO), which I first discussed here on April 28, 2009 at a price of $19.17, appears to have weathered the U.S.'s deepwater offshore oil drilling moratorium reasonably well, but given sector uncertainty, it's perfectly reasonable for more-cautious investors to close their FRO position now, and take the roughly $7 gain.
However, those investors who can tolerate high-risk can retain their full position and go for a possible larger gain.
Dayrates for the company's very large crude tankers (VLCCs) and Suezmax tankers rose to an average of $45,300 and $31,800 in the first quarter, respectively, up from $33,200 and $21,300 in the fourth quarter of 2009.
Continue reading Frontline: For High-Risk Investors, Only
Frontline: For High-Risk Investors, Only originally appeared on BloggingStocks on Tue, 24 Aug 2010 14:00:00 EST. Please see our terms for use of feeds.
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